Why do people buy gold?
People certainly buy gold for a lot of (good) different reasons.
Some people buy gold for long-term capital preservation. If your grandparents or great grandparents had left you a pile of $20 gold coins, you’d be a lot better off than if they had left you a wad of $20 bills.
That’s because the Federal Reserve has destroyed 96 percent of the dollar’s purchasing power.
Other people buy gold as insurance against reckless government policies and money printing.
We think that’s be very good idea. People by fire insurance for their homes, too. But the risk of their home burning down is slight compared to the certainty that the government will spend itself into bankruptcy.
Some people buy gold for privacy. They would like to keep their financial affairs better protected. Since the banks have become snoops for the government, reporting what you do, and since big corporations try to follow you in everything you do and anything you buy, just the peace of mind of having a little privacy is a very good reason to own gold.
You may remember how a lot of things were shut down after 9/11. Have you even wondered what would happen if the increasingly stressed national electricity grid went down, or if solar flares screwed up satellite functions and digital communications?
What would you do if ATM machines stopped spitting out cash?
I can tell you this. In any of those circumstances you would be very happy to own gold and silver, the world’s most liquid commodities.
But there is one more very good reason that people buy gold. And that is for good, old fashioned profits.
They just want to make money.
You may have noticed that when the price of gold (and silver) are suppressed for a long time by the government (it was illegal for Americans to own monetary gold as recently as 1974!); or that when the price is suppressed by wild money printing and interest rate manipulation, it can only be suppressed for so long.
All of these are good reasons to own gold.
The longer they suppress the gold price, the bigger the move when it breaks out! We’ve already seen the spike begin this past week. Gold has now topped $1,300 and is quickly approaching the $1,350 mark. Why wait until $1,400 to protect your portfolio when you still can now with gold spot under $1,350?
- Why Are the ‘Super Rich’ Buying Gold Right Now?
- The World’s Largest Hedge Fund Says “Gold to Surge!”
- Spending Our Way to Prosperity
- The Gold Bull is Off and Running!
- SPECIAL ALERT! Gold Higher on Wars and Rumors of War!